Bitcoin Forum

Hi

Am I right in assuming Avalon convert BTC into USD close or at pre order time?

If so, what's the total value in pre order 3 batch? What should a sell of this magnitude do to the market?

600 units a BTC75 so at least BTC45k total

If they just dump all we would be at $53/BTC ish. :D

Do they say they hold money in fiat/refund fiat equiv?

If so, am I missing a key part of the BTC pricing equation or as to why it's being pinned up if 45k sell shouldnt affect it?

They would be crazy to dump all the BTC right away since their production costs for batch 3 unlike batches 1 and 2 are way less that what these units were sold for. I would estimate 12K BTC at most to cover production costs.

But, assuming it's like BFL, and the other ASIC companies, doesnt their payment processor "automatically" convert it into USD or what not, hence, they refund is normally USD equiv of BTC? 

 

They are not going to sell all their btc: they are miners too!

but their payment processor ( http://paysius.com/ ) says auto converstion to USD http://paysius.com/faq etc

...and paysius would be pretty stupid to liquidate everything at the same time, wiping out their 1.49% fee.

They dont speculate? How would this wipe out their 1.49 fee?  They just sell at market, then -1.49% from the USD? Or did I miss how payment processors work for BTC? How does BitPay work - afaik this is the same model?

I'm pretty sure they guarantee liquidity or something.

They might also give sellers the option to recieve btc instead of $. If you were a company in china getting btc (exchange rate in china is mostly higher then mtgox) would be preferrable to usd in my opinion. Just wild guess though, but this forum is called speculation :)

to assume they would dump all at once is to assume they would just give their customers a super discount on their preorders.

I presume they made their BTC price in terms of a particular $ price average.

So dumping all at once would net them a loss on their profit.

They will not dump, as they need funds in bitcoins "to move them around quickly". 2nd batch had small speculative impact.

They're using Paysius.

Here's a quote from their site "Paysius immediately exchanges the Bitcoins for dollars and deposits the dollars automatically in your bank".


The market is not reacting the way it *should*(?)

600*75, I get 6*75,00, or 4,500 (c370k US).  Still quite a lot, and I think they're more than 75BTC on avg? Thought min price 88+

First, they are big enough to arrange for Paysius to forward their BTC rather than dollars. Avalon does not want dollars.

Second, they also accept Renmimbi as well as Bitcoins. The scuttlebutt is that they have substantial sales in Chine, which will give them local fiat to pay local bills.

"Avalon does not want dollars."  Could you explain this to me?

right after presales opened ther was a 5000BTC sell order at 73 which i thought to be them.
market munched it right up within 2 minutes.

Where do you get the fact they (Avalon, right?) are using paysius?

I paid my batch #3 order at bitpay.com

Dollars suck.  Especially in China.